The Development of Rates of Postage: An Historical and Analytical StudySmith, A. D. (Alfred Daniel)
History
The Development of Rates of Postage: An Historical and Analytical Study
Smith, A. D. (Alfred Daniel)
Postal rates
The transmission and delivery of letters for private individuals may
have some affinity to the transmission of official despatches, but in
theory such affinity is slight, especially in regard to the transmission
and delivery of local letters. Because the Government had found it
essential for its own purposes to establish a system of posts, it did
not necessarily follow that the Government must assume also the function
of conveying letters for private individuals. But the Post Office is one
of those organizations in the case of which the normal influence of
economic forces tends to exclude competition. Its operations are spread
over large areas, and duplication of services over large areas would
result in waste of effort and increase of expenses. Competing postal
establishments would exhibit the same glaring economic waste as
competing arrangements for the supply of gas, water, or electricity. The
service thus almost certainly becomes a monopoly; and its nature makes
the assumption of its management by the State advantageous. In times of
war, State monopoly of the means of communication (postal, telegraph,
telephone, and wireless) is essential. Even if these services were in
private hands at the outbreak of war, the first action of the Government
would undoubtedly be to assume control.
A further reason justifying the conduct of the postal service by the
Government rather than by private enterprise is that it is a necessity
for the State to provide a means for the regular transmission of
intelligence by letter of script throughout its territory. If the
working of the service were left to private enterprise, it would be
certainly confined to such routes as were found profitable, and those
parts of the country in which profitable routes could not be established
would be left unserved. The State alone can secure the establishment of
a complete service, in which regard must not be confined to
considerations of mere profit.[662] There are also minor features which
render State management peculiarly applicable to the postal service. The
actual operations are simple. As Adam Smith said: "There is no mystery
in the business."[663] The work is for the most part of a routine
character, and calls for no special skill or knowledge. That is not to
say that in the performance of the actual duties there is no room for
the acquirement of considerable manipulative skill. It means that in
principle the chief operations are simple, and may be reduced to routine
processes. There is the further important consideration that the
operations of the Post Office are intimately connected with the daily
life of the people, and are constantly subject to public observation and
criticism.
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